Satyam to launch 2000-seater Software Engineering Global Delivery Campus in Malaysia

• Exchanges documents with the Multimedia Development Corporation in the presence of Dato’Seri Abdullah Haji Ahmad Badawi and Satyam, founder and chairman, B Ramalinga Raju
• 2000 seater center scalable to 5000, is the second center in Malaysia, located on the IT Highway - Cyberjaya

Kuala Lumpur, Malaysia, December 7th, 2006: Satyam Computer Services, Ltd. (NYSE:SAY), the leading global consulting and information technology services company, announced today that it will establish a 2000-seat software engineering global delivery campus (GDC) in Cyberjaya, Malaysia, about 50 kilometers south of Kuala Lumpur. The largest and first GDC outside India will serve as a major technological development and software support facility for Satyam’s ASEAN, US and Middle Eastern customers in addition to the 100 seater global solution center (GSC) established about three years back.

B Ramalinga Raju seen here with The Honorable Prime Minister of Malaysia Dato’Seri Abdullah Ahmad Badawi on the occasion of signing of the MoU, in Kuala Lumpur, Malaysia

The MOU to this effect was signed today between the Multimedia Development Corporation, an agency of the Ministry of Science, Technology and Innovation and Satyam in the presence of The Honorable Prime Minister of Malaysia Dato’Seri Abdullah Ahmad Badawi, the Deputy Prime Minister of Malaysia Dato’Sri Najib Tun Razak, other cabinet ministers and key Malaysian dignitaries.

Commenting on this occasion, “Satyam was one of the first organizations to recognize Malaysia’s potential as an IT hub; we did so as early as 2003,”said Raju. “Malaysia’s advanced infrastructure, rich ICT talent pool, and competitive cost environment make it a strategic destination, an excellent place to establish a business presence. In fact, Satyam has been servicing numerous customers from our Global Solution Center (GSC) in Kuala Lumpur for three years. The country’s favorable business environment, fostered by unstinted government support, has prompted us to commit to the country further. As we build our second facility here, we look forward to continued support from the administration, which will enable us to realize our vision quickly.”

The GDC will be established in conjunction with Malaysia’s Multimedia Development Corporation (MDeC), which oversees the Multimedia Super Corridor (MSC) initiative. The MSC, Malaysia’s government-designated high-tech zone, is spread across a 750-square kilometer area, and features a state-of-the-art infrastructure. It is designed to make Malaysia a global IT leader by providing intellectual and strategic leadership and by helping Malaysian and international companies reach new technology frontiers.

“This is a landmark achievement in the MSC Malaysia’s vision of realizing Malaysia as a global hub for ICT and multimedia innovation. As MSC Malaysia has been highly rated as a location for Shared Services and Outsourcing by analysts from McKinsey and AT Kearney, Satyam’s commitment to MSC Malaysia is testimony to the capabilities global companies will find here. We continue our endeavor to attract and nurture leading-edge and world-class organizations like Satyam to partner with the Malaysian government to harness the full potential of ICT and take advantage of our capabilities”said Encik Badlisham Ghazali, CEO of MDeC.

Satyam’s Malaysian operations, which has been accorded the MSC status started as early as 2003 when the organization set up its first development center in Kuala Lumpur to serve as the nearshore hub for its ASEAN customers. The GSC features a world-class physical and information infrastructure, and is an integral part of Satyam’s Business Continuity Process model, which enables seamless support to global clients.

Realizing the potential of Malaysia’s young engineering talent and software development market, Satyam had spearheaded its first mass recruitment program for fresh graduates outside of India, in the year 2004. Till date more than 65 Malaysian engineering graduates have been trained by the organization and absorbed as full time employees in the global solution center in Kuala Lumpur. The initiative has not only helped the organization to staff its center but also transformed fresh graduates to industry-ready software engineers, thereby bolstering the ICT resource base of the country. The current staff strength of the company is 150 employees of which 2/3rd are Malaysian locals. With a growth plan of increasing headcount to 2000 associates over the next 4 years and better consolidation plans, Satyam is set to emerge as the biggest player among its peer group in Malaysia.

Satyam Contacts

For further information, contact: MediaRelations@satyam.com

Safe Harbor:
This press release contains forward-looking statements within the meaning of section 27A of Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Satyam undertakes no duty to update any forward-looking statements. For a discussion of the risks associated with our business, please see the discussions under the heading “Risk Factors” in our report on Form 20 F concerning the fiscal year ended March 31, 2006, furnished to the United States Securities Exchange Commission on April 28, 2006 and the other reports filed with the Securities Exchange Commission from time to time. These filings are available at www.sec.gov

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